Strategic Innovation and Performance of Commercial Banks

Abstract

The study sought to establish the effect of strategic innovation on the performance of commercial banks in Kenya and the corresponding hypothesis was formulated and tested. The study targeted 150 employees of the Commercial Bank of Africa located at the head office in Nairobi, Kenya and 131 of them responded. The study adopted a descriptive research design. SPSS Version 21 was used to analyze data using simple linear regression analysis. Research findings from the test of hypothesis established that strategic innovation positively and significantly affected the performance of Commercial Bank of Africa. The study findings support the Blue Ocean Theory and Resource Based View Theory which explain the role of innovation and internal resources in organizational performance. The study contributes to knowledge by establishing that strategic innovation has a positive and significant effect on the performance of commercial banks.